Question

Your employer offers a 401(k) plan with a 45% match, and you set a goal of...

Your employer offers a 401(k) plan with a 45% match, and you set a goal of retiring in 32 years with an amount of money which has the same buying power that 1.4 million dollars has today. If the account earns an annual interest rate of 1.7% and the expected annual rate of inflation is 1.9%, how much should you contribute each month to the 401(k)?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Your employer offers a 401(k) plan with a 46% match, and you set a goal of...
Your employer offers a 401(k) plan with a 46% match, and you set a goal of retiring in 29 years with an amount of money which has the same buying power that 1.9 million dollars has today. If the account earns an annual interest rate of 1.8% and the expected annual rate of inflation is 1.3%, how much should you contribute each month to the 401(k)? Round your answer to the nearest dollar. I Answered 2464, but the Correct Answer...
Your employer offers a 401(k) plan with a 28% match, and you set a goal of...
Your employer offers a 401(k) plan with a 28% match, and you set a goal of retiring in 26 years with an amount of money which has the same buying power that 1.5 million dollars has today. If the account earns an annual interest rate of 3.7% and the expected annual rate of inflation is 1.2%, how much should you contribute each month? Round your answer to the nearest dollar.
Axe company sponsors a 401(k) profit sharing plan with no employer match, but the company did...
Axe company sponsors a 401(k) profit sharing plan with no employer match, but the company did make noncontributory employer contributions because the plan was top-heavy. Jack quit today after six years working for Axe and has come to you to determine how much of his retirement balance he can take with him. The plan uses the least generous graduated vesting schedule available. What is Jack’s vested account balance if he has been a participant for 57 months? EMPLOYER EMPLOYEE CONTRIBUTIONS  ...
1. Your employer provides a 401(k) retirement plan and matches 100% of your contributions up to...
1. Your employer provides a 401(k) retirement plan and matches 100% of your contributions up to 5%. Your annual income is $54,000 and you expect to earn an annualized 8.0% return on your investment. What is the value of your 401(k) if you contribute 5% of your annual income after 30 years? What is the value if the return on investment is at a 10.0% annualized rate? How much of a difference would it be if you stopped making contributions...
Congratulations! Today is your 20th birthday, but you are broke. You just started working full-time, earning...
Congratulations! Today is your 20th birthday, but you are broke. You just started working full-time, earning $50,000 per year. Your goal is to have $10 million by your 65th birthday (i.e., 45 years from today). Your employer offers a 401(k) plan, and within that plan you choose to invest in an extreme low-cost S&P 500 index mutual fund (like ones offered by Schwab, Fidelity, Vanguard, etc.). The long-term expected return on the S&P 500 index mutual fund is 10% per...
Question 4. Jill earns $75,000 per year. Her employer offers both a Roth and traditional 401(k)...
Question 4. Jill earns $75,000 per year. Her employer offers both a Roth and traditional 401(k) plan. Assume Jill is less than 50 years old. If she contributes the maximum allowable, how much will her taxable income be if she contributes to the traditional 401 (k)? If instead Jill contributes the maximum allowable, how will her taxable income be if she contributes to a Roth 401 (k)?
Ann Sacks has an annual salary of $30,000. Her employer established a Section 401(k) plan, providing...
Ann Sacks has an annual salary of $30,000. Her employer established a Section 401(k) plan, providing that she may invest up to 12 percent of her salary in the plan. The employer will match the first five percent. This year Ann took an eight percent salary reduction. (a.) What is Ann's gross income from compensation? (b.) What amount is subject to social security tax? (c.) What is the employer's compensation deduction? (d.) What is Ann's total increase in her Section...
Assume your employer matches 50% of your contributions in the 401(k) plan up to 6% of...
Assume your employer matches 50% of your contributions in the 401(k) plan up to 6% of your annual salary. If your salary is $80,000, what is the total (employer and employee contributions) in your account balance after 3 years of employment?
Congratulations! Today is your 20th birthday, but you are starting with nothing in the bank. You...
Congratulations! Today is your 20th birthday, but you are starting with nothing in the bank. You just started working full-time, earning $50,000 per year. Your goal is to have $2 million by your 65th birthday (i.e., 45 years from today). Your employer offers a 401(k) plan (contributions by you are tax deductible, growth is tax deferred), and within that plan you choose to invest in an extreme low-cost S&P 500 index mutual fund (like ones offered by Schwab, Fidelity, Vanguard,...
Danielle puts 8 percent of her paycheck in a 401(k) plan administered by her employer. Danielle...
Danielle puts 8 percent of her paycheck in a 401(k) plan administered by her employer. Danielle earns $55,000 per year and is in the 28 percent tax category. Answer the following questions by filling integers into the blanks. Round to the nearest integer and do not put “thousand separators.” a. Her annual contribution was $ . b. What annual tax savings does she get from her contribution? $ . c. If her employer matches contributions on the first 5% of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT